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UNITED KINGDOM: Tier 1 Investor Route Closed to New Applicants with Immediate Effect
February 18, 2022
The Home Secretary has taken decisive action to close the Tier 1 Investor visa route to all new applicants from all nationalities with immediate effect.
The Tier 1 Investor route has traditionally allowed entry and stay in the UK if an applicant invested funds in share capital or loan capital in active and trading UK registered companies.
Since its introduction, the Tier 1 Investor route has been reformed to improve its value to the UK economy and to reduce the exposure of the route to illicit finance. The route allowed the government to target investors into the country.
It has been under constant review and some suspect cases had given rise to security concerns, including people acquiring their wealth illegitimately and being associated with wider corruption.
The Home Office has said that this move is part of its New Plan for Immigration in action and wanting to stop the abuse of the route whilst still making reforms to the Innovator route, part of the new points-based immigration system, to provide an ambitious investment route which works more effectively in support of the UK’s economy.
“I have zero tolerance for abuse of our immigration system,” said Home Secretary Priti Patel. “Under my New Plan for Immigration, I want to ensure the British people have confidence in the system, including stopping corrupt elites who threaten our national security and push dirty money around our cities.”
The Home Office has said that closing this route is just the start of its renewed crackdown on fraud and illicit finance. It will publish a fraud action plan, while the forthcoming Economic Crime Bill will crackdown on people abusing financial institutions and better protect the taxpayer.
Those who already have leave to enter or remain as a Tier 1 Investor can still extend their stay under the route, including an applicant’s ability to make an application for entry clearance outside the UK if they have held leave as a Tier 1 Investor in the 12-month period preceding the date of application, and to apply for settlement.
We shall keep you updated as we receive further updates on this subject.
As always, don’t hesitate to reach out to your Newland Chase dedicated contact or submit an inquiry here should you have any specific questions regarding this announcement.
